Standards for the Independency of Outside Directors of Board
We consider to be independent those persons to whom none of the items listedbelow applies.
(1) A person who is an executive of RYODEN or one of its subsidiaries (hereinafterreferred to as the “RYODEN Group”) or has been an executive of the RYODEN
Group during the past decade(2) A person whose major business partner is the RYODEN Group or its executive(3) A major business partner of the RYODEN Group or its executive(4) A person who is an accounts auditor of the RYODEN Group or belongs theretoas an employee or similar(5) A consultant, accounting expert, or legal expert who receives a large amount ofmoney or other sorts of assets in addition to executive remuneration from theRYODEN Group (if a person who receives any of the assets is an organizationsuch as a corporation or association, this applies to any of those who belong tosuch organization)(6) A person who receives a donation in the form of a large amount of money orother sorts of assets from the RYODEN Group (if a person who receives such adonation is an organization such as a corporation or association, this applies toany of those who belong to such organization)(7) A major lender of the RYODEN Group or its executive(8) A major shareholder of RYODEN or its executive(9) An executive of a company in which the RYODEN Group is a major shareholder(10)

A person to whom any of items (2) to (9) above has applied during the past

three years(11)

A spouse or relative within the second degree of consanguinity of a person

to whom any of items (1) to (10) above applies (limited to important executives)(12)

An executive at a company in which the outside director also serves as such

*1 “An executive” refers to an executive as stipulated in Article 2 Paragraph 3 Item 6 of the Ordinance for
Enforcement of the Companies Act.
*2 “A person whose major business partner is the RYODEN Group” refers to a person who is a group ofbusiness partners (direct business partner and its parent company and subsidiaries as well as a corporategroup consisting of the parent company’s subsidiaries; this also applies to the following sections) that provides
products and/or services to the RYODEN Group and whose amount of transactions with the RYODEN Groupin the most recent business year exceeds 2% of the group’s annual consolidated net sales.

*3 “A major business partner of the RYODEN Group” refers to a group of business partners to which theRYODEN Group provides products and/or services with the amount of its transactions with the group in themost recent business year exceeding 2% of its annual consolidated net sales.
*4 “Large amount of money and other sorts of assets” is the amount of money or other sorts of proprietary
profit whose total value in the most recent business year exceeds \10 million and 2% of the person’s total
income in the most recent business year.
*5 “A major lender” refers to a lender whose name is included in the business report for the most recent
business year as one of the major lenders.
*6 “A major shareholder” refers to a shareholder that holds 10% of voting rights or more (including indirectownership) at the end of the most recent business year.
*7 “Important executives” refer to persons who are a director or an employee of general manager class orhigher.
*8 Item (12) refers to a case in which an executive of the RYODEN Group serves as an outside director atanother company and an executive of the company serves as an outside director of RYODEN.